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Henglin Home Furnishings Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Miscellaneous
  • ISIN: CNE100002TH6
  • SHG: 603661
CNY
35.63
1.56 (4.58%)

Sep 23

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Henglin Home Furnishings Co., Ltd.

Why is Henglin Home Furnishings Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 8.86%
  • The company has been able to generate a Return on Capital Employed (avg) of 8.86% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 18.95% and Operating profit at -0.22% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 10.72% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 18.95% and Operating profit at -0.22% over the last 5 years
4
Flat results in Jun 26
  • ROCE(HY) Lowest at 2.76%
  • PRE-TAX PROFIT(Q) At CNY 85.38 MM has Fallen at -43.33%
  • NET PROFIT(Q) At CNY 62.49 MM has Fallen at -51.42%
5
With ROE of 5.61%, it has a very expensive valuation with a 1.51 Price to Book Value
  • Over the past year, while the stock has generated a return of 4.16%, its profits have fallen by -1.7%
  • At the current price, the company has a high dividend yield of 1.4
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Henglin Home Furnishings Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Henglin Home Furnishings Co., Ltd.
9.4%
-0.54
52.48%
China Shanghai Composite
3.0%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
18.95%
EBIT Growth (5y)
-0.22%
EBIT to Interest (avg)
3.67
Debt to EBITDA (avg)
2.37
Net Debt to Equity (avg)
0.52
Sales to Capital Employed (avg)
1.53
Tax Ratio
35.51%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.33%
ROE (avg)
10.72%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
1.51
EV to EBIT
15.14
EV to EBITDA
7.97
EV to Capital Employed
1.34
EV to Sales
0.60
PEG Ratio
NA
Dividend Yield
1.37%
ROCE (Latest)
8.88%
ROE (Latest)
5.61%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
NET SALES(Q)

Highest at CNY 3,450 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 79.8%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.03 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.1 times

-13What is not working for the Company
ROCE(HY)

Lowest at 2.76%

PRE-TAX PROFIT(Q)

At CNY 85.38 MM has Fallen at -43.33%

NET PROFIT(Q)

At CNY 62.49 MM has Fallen at -51.42%

RAW MATERIAL COST(Y)

Grown by 6.99% (YoY

Here's what is working for Henglin Home Furnishings Co., Ltd.

Net Sales
Highest at CNY 3,450 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales
At CNY 3,450 MM has Grown at 28.08%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio
Highest at 5.03 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio
Highest at 6.1 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio
Highest at 79.8%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Henglin Home Furnishings Co., Ltd.

Pre-Tax Profit
At CNY 85.38 MM has Fallen at -43.33%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 62.49 MM has Fallen at -51.42%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Raw Material Cost
Grown by 6.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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